Direct Debit Advance Notices for Mandates in Contract Accounting

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This blog post introduces the procedure of creating an advance notice to inform payers about future direct debit payment collection in SAP S/4HANA Cloud public edition. It is aim for the usage related to direct debit mandates in Contract Accounting.

What is Advance Notices?

Before the collection of the future direct debit payments, the payee can send an advance notice to inform the payer about the payment collection.

Prerequisites

Before creating direct debit advance notices, you must complete the following customizing activities:

1. Setting up the number ranges for advance notices
2. Activating the advance notice function
3. Setting up the lead days for the advance notices
4. Configuring the output of advance notices, including form templates, email templates and form template for correspondence
5. Maintaining the email address for the business partners that receives the advance notices

In the following activities, we introduce the procedure in SAP S/4HANA Cloud public edition.

Setting up the number ranges for advance notices

This activity allows you to set up a range of numbers within which the advance notices are valid.

1. In your configuration environment, find the Enter Number Ranges for Direct Debit Prenotifications (ID: 106939).
2. Create entries of numerical ranges between which the direct debit advance notices are valid.
   

Activating the Advance Notice Function and Setting up the lead days for the advance notices

In this activity you activate the direct debit advance notice function and setting up the lead days to determine the execution day for the payment collection.
You must complete the following activations in different configuration steps:

• Define General Settings (ID: 106087)
  Select the Activate Direct Debit Advance Notice checkbox.
  Choose a calendar ID and lead days. By doing so, you can set up the execution day for the direct debit payment collection.
  Note: Ensure that there is a minimum number of days between the notification of the upcoming direct debit and its collection day. 
• Define Payment Methods (ID: 101952)
  In this activity you activate the direct debit advance notice for the payment method by countries/regions.
  In the Payment Methods under Required master record specification group box, select the Direct Debit Prenotification checkbox.
  
• Define Specifications for Paying Company Code (ID: 101251)
  In this activity you activate the direct debit advance notice for the specific company code.
  Select your company code and double click.
  In the Specifications for SEPA Payments/Direct Debit Mandate group box, select the Direct Debit Pre-notification checkbox.

Output Management preparation

You have configured the output of the advance notices with the following steps.
Note: You have to activate the Output Management (1LQ) scope item.

• Maintain Form Template (app: F1434)
  In this app you can either use the SAP pre-defined template FIN_CA_DDM_ADVANCE_NOTICE for advance notices or you can copy the SAP delivered template, based on which create your own form template.

  Download the dunning notice template and open it in the LiveCycle Designer for the modification.
  Note: You can install Adobe LiveCycle Designer in Install Additional Software app.

  
• Assign Form Templates (ID: 102313)
  After you prepare your own form template and upload it, you must activate it in this configuration step.
  Assign the Application Object Type: FKC_DDM_ADVANCE_NOTICE and the Output Type: DDM_ADVANCE_NOTICE to your form template.
  
• Assign Email Templates (ID: 101945)
  In this activity, you can assign the email template that you have configured the texts and branding according to your needs. For more information about how to configure your own email template, see Configuring Email Templates.
  Assign the Application Object Type: FKC_DDM_ADVANCE_NOTICE and the Output Type: DDM_ADVANCE_NOTICE to your email template.
  
• Define Form Template for Correspondence (ID: 102223)
  In this activity assign the form template and the email template to a correspondence type in Contract Accounting. You can determine which correspondence is included when generating and printing documents.
  Select 0048 - Direct Debit Pre-Notification as your correspondence type and assign your form template and email template IDs.

Procedure of Creating Direct Debit Advance Notices in Contract Accounting

If you activate advance notice for a payment method, you cannot generate payment through the Payment Run/Debit Memo Run app for this payment method unless the advance notice for this payment has been created. To create an advance notice for the payment, see the following steps.

1. Use the Prenotify Direct Debits app to create advance notices.
2. Use the Payment Run / Debit Memo Run app to post documents of direct debit payments.
   You must complete the following action to include the open items in payments:
   • Select the Pre-notified Items checkbox
   • Fill in the "Execution Date" field

Optional: Adjust Number of Days between Notification and Direct Debit Payment Collection

If the number of days between the advance notice and the payment collection date are insufficient, those pre-notified items can be skipped when running the payment runs in this app.
In the following section, SAP provides the Cloud Business Add-In (BAdI) implementation for this scenario.
As a key user, you can use the cloud business add-in (BAdI) to implement your own logic. Before using the cloud BAdI, ensure that you have assigned the business role SAP_BR_EXTENSIBILITY_SPEC.
Note: Regarding of extensibility options for developers, go to Business Accelerator Hub and search for Adjust Payment Data (for Customer).

1. Open Custom Logic app.
2. Select “Create” and select FKK_EVENT_0610.
3. Enter the Implementation Description.
4. Publish.
5. Open Code Editor.
6. Select edit and enter your own logic.

You can reuse the following coding and adjust based on your business requirements.

  METHOD if_fkk_sample_0610_badi~execute. 
 
    DATA: ls_messages TYPE LINE OF messa_kk_gfn_t. 
 
    " BAdI implementation for Direct Debit Mandates - Advance Notice 
    " check number of days between Notification and Collection Date 
 
    "  "Select Pre-Notified Items" option is active 
    IF capaymentrunparameter-prenotifieddrctdebitsareseld EQ space. 
      RETURN. 
    ENDIF. 
 
    LOOP AT cadocumentitemstobepayed ASSIGNING FIELD-SYMBOL(<fs_op>). 
      " Compare Creation Date of Payment Run ( DPAYC-ERDAT) and  Execution Date calculated in event 657 / SSCUI 106087-"Lead days" for advance notice 
      IF capaymentrunadminrecords-creationdate < <fs_op>-casepaprenotifexecutiondate. 
        " deactivate item 
        <fs_op>-itemisactivated = abap_false. 
        " set exception:  Pre-Notification with Unsuitable Date 
        <fs_op>-capaymentexceptionreason = '053'. 
        " add info message 
        ls_messages-systemmessageidentification = 'FKKID_DDM'. 
        ls_messages-systemmessagenumber         = '073'. 
        ls_messages-systemmessagetype           = 'I'. 
        ls_messages-systemmessagevariable1      = <fs_op>-cadocumentnumber. 
        ls_messages-systemmessagevariable2      = <fs_op>-caamountintransactioncurrency && '/' && <fs_op>-transactioncurrency. 
        ls_messages-systemmessagevariable3      = <fs_op>-casepaprenotificationnumber. 
        ls_messages-systemmessagevariable4      = <fs_op>-casepaprenotifexecutiondate+6(2) && '/' && 
                                                  <fs_op>-casepaprenotifexecutiondate+4(2) && '/' && 
                                                  <fs_op>-casepaprenotifexecutiondate(4). 
        APPEND ls_messages  TO messages. 
      ENDIF. 
    ENDLOOP. " AT cadocumentitemstobepayed 
 
  ENDMETHOD.  

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